Gratuity Calculator

Estimate gratuity using joining and leaving dates, last-drawn wages, service assumptions and regular or direct fixed-term employment.

Service period

Joining and leaving datesYears and months

Joining dateLeaving date (last day employed)

Date mode includes the leaving day and uses that date for applicable rules, not the later payment date. Calendar anniversaries clamp month ends, including 29 February. Dates establish elapsed tenure, not actual days worked.

Continuous-service basis

Employment categoryReason employment endsBasic salary (monthly)Use monthly basic from your salary structure.Dearness allowance (monthly)Enter 0 if DA is not part of your salary.Statutory coverage confirmedMost eligible private-sector estimates use the 15 / 26 formula.Retaining allowance (monthly)

Estimate statutory wage add-back (advanced)

Use payroll-confirmed final monthly gratuity wage

Service conditions met under selected assumptions

Meets the modeled five-year service threshold; assumes statutory coverage and continuous service confirmed by payroll.

Continuous service and establishment coverage must be confirmed. Direct fixed-term employees are not the same as workers engaged through a contractor. Seasonal, piece-rated, working-journalist, government-service, forfeiture and re-employment-after-disablement cases require separate review.

Estimated covered payout

₹1,55,769

Years used

6 years

Modeled statutory ceiling

₹20,00,000

Monthly salary for gratuity	₹45,000
Completed service years	5
Additional completed months	7
Remaining service days	0
Calendar days including leaving date	2040
Years used in formula	6
Formula amount before eligibility / ceiling	₹1,55,769
Estimated covered payout	₹1,55,769

Formula used

Formula used = Last-drawn wage x 15 / 26 x rounded service years.
Historical wage base = basic + DA. For exits from 21 November 2025, revised last-drawn wages include retaining allowance and optional classified statutory add-backs. Payroll-confirmed final wage overrides the estimate. This is not automatically 50% of CTC.
Ordinary covered amounts round up only when residual service exceeds six calendar months, including any remaining days. The leaving date is included. Exactly six months does not round up.
Service eligibility is checked before rounding: ordinary five-year minimum; modeled direct fixed-term contract expiry requires one year. Death/disablement removes the five-year minimum. Current fixed-term and death cases use a calendar-anniversary fraction in date mode: completed years + residual days / days to next anniversary. This pro-rata convention is an estimate for payroll confirmation; manual mode uses months / 12.
The Rs 20 lakh ceiling models statutory covered payout, not tax exemption. Better contractual benefits can exceed it and need separate payroll calculation. No tax-free amount or income-tax liability is calculated here. The 15/30 option is an illustration, not a statutory entitlement or a tax-exemption calculation.
This is an estimate. Actual gratuity may depend on eligibility, employer policy, wage definition, statutory limits, and final settlement rules.

Reviewed 27 October 2026. Sources: Social Security Code, sections 53-54, Ministry eligibility and wage FAQ, ceiling and special-case guidance. CTC gratuity provisions are separate employer budgeting amounts, not guaranteed settlement payouts.

Quick answers

Gratuity Calculator FAQs

How is gratuity calculated in India?

For covered monthly-salaried employees, the estimate is applicable last-drawn monthly wages x 15 / 26 x service used. Settlement date, revised statutory wages, eligibility, pro-rata cases and the modeled Rs 20 lakh ceiling matter.

Is gratuity part of monthly in-hand salary?

No. Gratuity may be included in CTC, but it is usually not paid monthly. It is normally payable when eligibility and service conditions are met.

When is an employee eligible for gratuity?

Ordinary cases require five years of continuous service. The current direct fixed-term contract-expiry case requires one year under the contract; death and disablement waive five years. Rounding service for the amount does not establish eligibility. Confirm coverage and any continuous-service exceptions with payroll.

Does the calculator round service years?

Date mode counts both joining and leaving days and rounds an ordinary covered amount only when residual service exceeds six calendar months. Exactly six months does not round up; an additional day can change it. Pro-rata cases instead use a disclosed calendar-anniversary fraction. Service rounding does not establish eligibility.

Do four years and 240 days automatically qualify for gratuity?

The calculator does not automatically approve that claim. Section 54 has continuous-service and credited-day tests, but dates alone do not establish days actually worked, qualifying credited days or the applicable legal interpretation. Select payroll review for breaks, disputed service or day-count exceptions. The optional 190/240 and 95/120 references never override that review status.

Does gratuity calculation include bonus or HRA?

For exits from 21 November 2025, revised statutory wages can include retaining allowance and applicable add-backs of classified exclusions. Do not assume every allowance is excluded or simply use half of CTC. The tool accepts classified wage inputs or a payroll-confirmed final wage; historical estimates use basic plus DA.

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Assumptions

Designed for India salary and CTC planning.
Covered monthly-salaried estimate uses last-drawn applicable wage x 15 / 26 x eligible service, limited to the modeled Rs 20 lakh statutory ceiling; tax exemption is not calculated.
Ordinary service requires five years before amount rounding. Current direct fixed-term contract-expiry cases use a one-year threshold and pro-rata service; death and disablement waive five years.
From 21 November 2025, revised final wages apply to the whole service calculation, not just service after commencement. Classified wage add-backs are optional; payroll-confirmed final wages override them.
Actual eligibility and final settlement may depend on employer policy, statutory rules, wage definition, and applicable limits.
Date mode includes the leaving day, uses UTC calendar anniversaries and shows elapsed years/months/days. Calendar tenure is not actual worked or statutory credited days. Continuous-service exceptions stay in payroll review, even when a reference day-count benchmark is met.

Disclaimer

The information and calculations provided on this website are for general informational and educational purposes only. Results are estimates based on publicly available tax rules and assumptions and may not reflect your actual tax liability or take-home pay. This content does not constitute tax, legal, accounting, or financial advice. Tax laws and regulations change frequently and vary based on individual circumstances. Consult a qualified tax professional, accountant, or financial advisor before making any financial decisions.

This website is not affiliated with the IRS, Income Tax Department of India, or any government agency.

Formula used

Formula used = Last-drawn wage x 15 / 26 x rounded service years.

Historical wage base = basic + DA. For exits from 21 November 2025, revised last-drawn wages include retaining allowance and optional classified statutory add-backs. Payroll-confirmed final wage overrides the estimate. This is not automatically 50% of CTC.

Ordinary covered amounts round up only when residual service exceeds six calendar months, including any remaining days. The leaving date is included. Exactly six months does not round up.

Service eligibility is checked before rounding: ordinary five-year minimum; modeled direct fixed-term contract expiry requires one year. Death/disablement removes the five-year minimum. Current fixed-term and death cases use a calendar-anniversary fraction in date mode: completed years + residual days / days to next anniversary. This pro-rata convention is an estimate for payroll confirmation; manual mode uses months / 12.

The Rs 20 lakh ceiling models statutory covered payout, not tax exemption. Better contractual benefits can exceed it and need separate payroll calculation. No tax-free amount or income-tax liability is calculated here. The 15/30 option is an illustration, not a statutory entitlement or a tax-exemption calculation.

This is an estimate. Actual gratuity may depend on eligibility, employer policy, wage definition, statutory limits, and final settlement rules.

Assumptions

Designed for India salary and CTC planning.

Covered monthly-salaried estimate uses last-drawn applicable wage x 15 / 26 x eligible service, limited to the modeled Rs 20 lakh statutory ceiling; tax exemption is not calculated.

Ordinary service requires five years before amount rounding. Current direct fixed-term contract-expiry cases use a one-year threshold and pro-rata service; death and disablement waive five years.

From 21 November 2025, revised final wages apply to the whole service calculation, not just service after commencement. Classified wage add-backs are optional; payroll-confirmed final wages override them.

Actual eligibility and final settlement may depend on employer policy, statutory rules, wage definition, and applicable limits.

Date mode includes the leaving day, uses UTC calendar anniversaries and shows elapsed years/months/days. Calendar tenure is not actual worked or statutory credited days. Continuous-service exceptions stay in payroll review, even when a reference day-count benchmark is met.

Disclaimer

This website is not affiliated with the IRS, Income Tax Department of India, or any government agency.